APQ Global (LON:APQ)

APQ Global (LON:APQ)


Share Price
70.00 p
Change
-5 (-6.67 %)
Market Cap
£54.73 m
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APQ Global

APQ is an international emerging markets company with a focus on Asia, Latin America, Emerging Europe, the Middle East and Africa. APQ aims to deliver a stable and growing dividend and capital growth for shareholders by focusing on generating significant income from business opportunities with good value and long-term growth potential.

The company’s activities in emerging markets are...

EPIC: APQ
Market: AIM:APQ
52-week High/Low: 95.00p / 75.00p
Sector: Financial
Market Cap: £54.73 m
Website: apqglobal.com
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Big Picture – A Deep Dive Examination of APQ Global


APQ Global Snapshot

APQ Global (ticker: APQ LN)
is a global emerging markets income company with interests across Asia, Latin America, Eastern Europe, the Middle East and Africa.


Our objective is to steadily grow earnings to deliver attractive returns and capital growth to our shareholders.

We achieve this through a combination of revenue generating operating activities and investing in growing businesses across emerging markets. We run a well-diversified and liquid portfolio, take strategic stakes in selected businesses and plan to take operational control of companies through the acquisition of minority and majority stakes in companies with a focus on emerging markets

2016 was a defining year for our company. On 11 August 2016, we raised £78 million on the Channel Islands Stock Exchange, and we were admitted to trading on the London Stock Exchange’s AIM Market two weeks later. These landmark developments give us the resources to focus on growing dividends and substantial capital growth for our shareholders in the years to come, and we want to thank those involved for their support – not only our distinguished group of institutional and private shareholders, but also our Board of Directors and the management team who worked hard to make this happen.

Our key objective from the start was to generate sufficient income in the portfolio to retain a healthy dividend yield, and that objective remains to that day (with APQ maintaining its current target of 6%). This focus on income is not just a reflection of the current state of the investment universe but reflects our fundamental view that investors in emerging markets tend to overpay for the ‘dream’ of long-term growth and underpay for the cash flows readily coming from the asset class. Our approach is the exact opposite: We believe Emerging Markets (‘EM’) offer tremendous income opportunities regardless of index performance, asset class. If public or private bonds offer the best opportunities, we will pursue them. If we can find decent long-dated cash flows in hedging instruments or royalties, we will pursue those as well. Our edge as team, in our view, is a deep and long-standing expertise in scanning the EM universe for these opportunities and embedding them on our balance sheet to achieve the income target we have set ourselves and achieve modest book value growth in the medium term.

This approach has served us well in our first year of operation. We paid our first dividend in January, and subsequent 1.5p dividends in April and August. We have stuck to liquid exposure because we see a distinct lack of value and income potential in illiquid opportunities across EM. The latter is a reflection of a glut of liquidity compressing risk premia in global markets.

The Company has successfully exited its position in Charlemagne Capital (which had represented 2.4% of book value) in December 2016, generating a Return on Investment of around 40%.

In addition, the Company has increased its investment in City of London Investment Group (‘CLIG’) to a holding that represents 2.9% of book value, taking advantage of the recent share price weakness. We believe that the outlook for the emerging markets equity asset class, the prudent management and an attractive dividend yield bode well for the CLIG stock price.

The Company also holds 2.9% and 3.9% respectively in two publicly listed emerging markets debt funds (EMD US and EDD US). Both funds trade at appealing discounts and have high dividend yields in excess of 8%.

Tal Sandhu

Tal is a member of APQ Global’s management team. Previously Tal is co-founder and senior portfolio manager at APQ Partners LLP.

Tal started his career in finance at SanPaolo IMI in 1997. Based on an exceptional quantitative skill set, he quickly developed in-depth knowledge of complex equity and fixed-income derivatives strategies in European markets. During his time at San Paolo IMI and subsequently at Banca Intesa, he was responsible for managing complex cross-asset class correlation trading books.

In February 2006, Tal joined the emerging markets trading desk at Morgan Stanley with responsibility for managing the firm’s complex products risk in emerging markets credit, currency and interest rate products. He subsequently left with other core members of the team to GLG Partners where he focused on managing the firm’s equity and fixed income derivatives risk in emerging markets portfolios.

Tal obtained a BSc in Economics and Business Finance from Brunel University and an MSc in Economics and Finance from the University of Warwick.

 

Bart Turtleboom, CEO

Bart started his career at the International Monetary Fund where he published extensively on international monetary policy, including ground-breaking research on interest rate liberalization in Africa and the interaction between tax collection and monetary policy in Brazil.

Bart joined Deutsche Bank’s emerging market group in January 1998 and subsequently worked on benchmark transactions in Argentina, the Philippines and Russia.

After a brief stint trading emerging markets on the buy-side, Bart joined Morgan Stanley’s emerging markets group in 2004, leading to his appointment as global co-head of emerging markets sales and trading in 2006 and head of Morgan Stanley’s Emerging Markets Capital Market Group in Europe. Leading a team of one hundred professionals based in Asia, Latin America and Europe, he built the group into one of Wall Street’s pre-eminent proprietary emerging markets trading groups.

On 15 September 2008, Bart and a core team of Morgan Stanley professionals joined GLG Partners to lead its emerging markets practice. In early 2013, Bart co-led GLG’s team move to APQ Partners, a London-based emerging markets asset manager where he now serves as Managing Partner and Chief Investment Officer.

During his career, Bart has worked on ground-breaking transactions in emerging markets, including the first transaction involving Russian Paris-Club debt, the issuance of the largest Eurobonds denominated in Mexican Peso, ground-breaking currency hedging transactions in Turkey and multi-billion dollar lending facilities in the CIS.

Bart obtained his PhD in Economics at Columbia University. He has obtained various academic awards including fellowships from The Brookings Institution and the Belgian National Science Foundation.

 

Mazen Nomura

Mazen has two decades of Emerging Markets risk-taking experience, primarily in credit (mostly public), both in buy-side and sell-side roles. He worked at leading institutions of different countries and corporate cultures (Morgan Stanley, Nomura, Sberbank, GLG-MAN Group). His experience includes line management and divisional management committee responsibilities, including crises periods (2008 Lehman crisis, 2014/5 Russian crisis). He has personal entrepreneurial involvement in the Arab world in tech and non-tech ventures. Mazen will assist the company with managing its portfolio of liquid assets.” and change the label at the bottom of the pic from ‘CIS, Middle East’ to ‘APQ Global

 

Wesley Davis

Wesley has spent 20 years in Emerging Markets Finance spanning a wide range of roles, products and geographies at Chase/JPM, Deutsche Bank, Merrill Lynch, HSBC, and Renaissance Capital. While he started as a derivatives trader, he ultimately opened up several domestic bond markets to international investors and led the acquisition and financing of new businesses in Central Asia and Africa.

For the past three years, Wesley has been leading the acquisition and development financing of several large IPP’s in West Africa. Projects range from 300-1000+mw in size, and include thermal and renewable assets.

Wesley has acted as Chairman of Advisory Boards and a member of The Board of Directors for several companies in Emerging Markets. He completed the Financial Times Non-Executive Directors Advanced Diploma course in autumn 2015.

Wesley holds a Masters in International Management from the American Graduate School of International Management (Thunderbird), an MBA from Arizona State University, and a BA in Economics from the University of Florida.

 


 

The number of AIM securities in issue

The Company has in issue 78,055,000 ordinary shares of no par value, with no ordinary shares held in treasury.

Bart Turtelboom - 28.19%

Vega Absolute Return Fund - 28.19%

Old Mutual - 23.06%

Merseyside Pension Fund - 12.81%

TC Asset Management - 3.46%

This information was last updated on: 21/8/2016

There are no restrictions on the transfer of the ordinary shares of the Company.

APQ GLOBAL

1st Floor, Tudor House
Le Bordage, St Peter Port

Guernsey, GY1 1DB
Channel Islands

[email protected]

APQ GLOBAL

1st Floor, Tudor House
Le Bordage, St Peter Port

Guernsey, GY1 1DB
Channel Islands

[email protected]

Registered Office and Business Address

APQ Global
1st Floor
Tudor House
Le Bordage
St Peter Port
Guernsey GY1 1DB
Channel Islands

Company Secretary and Corporate Services Provider

Active Services (Guernsey) Limited
Tudor House
Le Bordage
St Peter Port
Gurnsey GY1 1WD

Financial PR Advisers

Buchanan Communications
107 Cheapside
London EC2V 6DN
United Kingdom

Registrar

Capita Registrars (Guernsey) Limited
Mont Crevelt House
Bulwer Avenue
St Sampson
Guernsey GY2 4LH
Channel Islands

Auditors

Ernst & Young LLP
Royal Chambers
St Julian’s Avenue
St Peter Port
Guernsey GY1 4AF
Channel Islands

Nominated Adviser and Broker

Nplus1 Singer Advisory LLP
1 Bartholomew Lane
London EC2N 2AX
United Kingdom

English Legal Advisers

Stephenson Harwood LLP
1 Finsbury Circus
London
EC2M 7SH
United Kingdom

Principal Bankers

NatWest
2nd Floor
Royal Bank Place
St Peter Port
Guernsey GY1 4BQ
Channel Islands

Guernsey Legal Advisers to the Company

Mourant Ozannes
PO Box 186
1 Le Marchant Street
St Peter Port
Guernsey GY1 4HP
Channel Islands

CISEA SPONSOR

Carey Commercial Limited
1st & 2nd Floors
Elizabeth House
Les Ruettes Brayes
St Peter Port
Guernsey
GY1 4LX
Channel Islands

 

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